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Old 13th March 2007, 17:49   #1
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Default Purchasing a repossessed car from a bank

Hello everyone,

Few months back, when I was looking for a used car (wanted to upgrade to a sedan with minimum cost) and was browsing the used car market online as well as 'offline'. I was mainly interested in used OHC in the range of 3L, based on my calculation it was possible to find 2000 model. But after couple of months of hunting the used car showrooms, I could not find any OHC in a good condition, if the condition was good then the price went up considerably and out of my budget.

Then I came across old acquaintance of my father who happen to be a mechanic himself and he suggested that I should look for the cars which are auctioned by the banks and one can bid for the price. He ensured that if bided properly one can find a good car for much lesser price than the used car showrooms. He also gave an example of used '02 1.5Exi OHC that he got for 2.3L only. He has been doing it for sometime now to refurbish the old car and sell it individually. He also took me to one such car storage in shutdown factory near Kanjurmarg station (for non-Mumbaites, it is a northern suburb in Mumbai). He had invitation letter from bank to inspect the vehicles prior to auction. We inspected several cars there, some were in mint conditions, I took down the registration numbers so that we could bid when auction starts. One needs to become a member with the bank by depositing some amount and he was already a member.

Later when I did some research, I found out that most of these vehicles are seized forcibly and do not have original registration paper, also the bank auctions them 'as it is" basis. I felt uncomfortable and dropped the idea, also because I came across a good used Accent (which I bought later).

Wanted to find out from you all if I lost an opportunity or did I do a wise thing to not go for it?

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Old 13th March 2007, 18:13   #2
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I think they sell it in "as it is" condition but with proper paper.
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Old 13th March 2007, 18:29   #3
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Sometimes you get a good deal, sometimes you dont. i think you did the right thing though.
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Old 13th March 2007, 19:18   #4
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Well, these auctions have closely guarded circles and its difficult for an outsider (read non-regular buyer) to get a good deal. A significant amount of deals are fixed...either before the auction or on the day itself.

But yes, if you have a reliable source....you can get a great deal. The paperwork involves a little bit of running around, but rest assured...if its a major bank, the paper work is in order.
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Old 13th March 2007, 19:19   #5
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You could be really luck at times. There are a lot of cars out there seized and available at good rates. You will definitely get only a duplicate RC and will have to take a risk with the change of ownership, as the RTO usually gives the owner some leeway to pay the loan with penalty. I think that period is 6 months, so sometimes the TOA could be delayed by 6 months. I bought my Sienna at a bank auction at a very attractive rate 4 years ago. Had no problems with the TOA either.
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Old 13th March 2007, 19:21   #6
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I have also heard about these auctions from a friend who was with Citibank. Infact was offered quite a few yummy deals. But I stayed away as my mother was not too pleased with the "karma" of the cars. "You know, someone's car which has been repossessed could have bad energy and all that" is what she kept saying . Apart from that, none of the cars being offered had FSH and there was no way of getting the cars checked properly.
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Old 27th May 2007, 01:35   #7
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does any one have any contacts in this regard?
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Old 27th May 2007, 08:43   #8
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Your best bet!!!
Register yourself in b2bmotors.ebay.in
All autions, across India are conducted by almost all banks.
After you have registered, You can set updates to your mobile phone and e-mail.

You will get the updates when the auction starts.
You can view the cars and the quote. You can put your quote and get the car you want.

You can make some serious money!! and a good business too!!
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Old 27th May 2007, 22:06   #9
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Buying a car without its original papers is a risk that isn't worth taking. While there may be nothing wrong with the car, it reduces its value by at least 25-30k and don't let anyone tell you otherwise. Overall I think you did a smart thing by not bidding on these cars. You're better off paying a little more if necessary but having the comfort of being in possession of a car with all the original papers intact.

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Old 11th October 2007, 17:32   #10
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How should one be sure that an used car dealer is not trying to sell a repossessed car?

Will he have full papers with him like original RC, Insurance, Tax paid token, service history etc?

Experts please comment. I am in the lookout for an OHC - don't want to get a repossessed vehicle.
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Old 11th October 2007, 18:27   #11
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According to the law (as it is on paper), a car is "pledged" with the bank (the same way you pledge gold or some trinket with the pawn broker). when a loan is advanced on security of the vehicle.
In the same way a pledged item becomes the property of the pawnbroker who then goes on to sell the trinket when the loan is defaulted, the banker can sell the pledged goods without any further legal action.
So, in theory, it is perfectly legal for the bank / financier (ever private financiers) to repossess and then go on to sell vehicles pledged with them.
And here is final icing on the cake - if there is a problem, you can ask the bank to refund the money you paid at the auction. Unlike the case of non-corporate used car dealers, (who are shady and fly-by-night operators, even if they have been in business for a long time), banks have assets against which you can proceed through a CONSUMER COURT if the car throws up a ownership problem later on.
In used car dealers - the branded true value dealers never transfer the vehicle to the dealership. Hence, technically, you are buying the car from the registered owner, and in case of an ownership problem, they can always claim that they are merely go-between and the buyer should deal with the original owner. Though such claims may never hold in courts, the fact that the dealer is not actually the owner means you need to find the registered owner and make him/her a party in the proceedings in case title issues come up.

IMHO, all you need to do - verify the registered owner with the RTO, and make sure that the bank says YES when you ask if they sent a notice to the defaulter before repossession and another notice before the auction. You are doubly safe if they show you the postal acknowledgement.
I will never hesitate before purchasing a repossessed used car if it is in good condition otherwise from a BANK. Unfortunately, I have not come across any such auctions in Cochin or around.
I do not have the same confidence levels to deal with private financiers, however. The crooks who do the repossession jobs tend to remove the accessories and/or substitute parts, tyres, alloys, seat covers, etc.
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Old 12th October 2007, 10:09   #12
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check this

:: autojunction ::

Used car dealers might just aswell sell off repossessed cars to unsuspecting buyers!

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Old 27th January 2009, 00:31   #13
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Default Repossessed Cars

I am a Bit curious about this and have thus decided to start this thread.

This happens in many casses, Someone Fials to pay up their loan in their cars are repossessed. What happens to these cars. Are they sold off? If yes, then were are they sold. A Repo car could be great value of money if it is a sparingly used car.

For Example, A Brand new Maruti, costs around 2.3 lks off the shelf. But if Repo'd, it should be somewhere near 1.5 or something, am I right? If the car has run say around 5-6k kms, The repo car is extremely great value for money.

Can someone please guide me on where i can buy a car that has recently been repo'd.

Mods, If this thread is in an inappropriate secion, my apologies.
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Old 27th January 2009, 00:37   #14
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These are generally advertised in classifieds. If you have some friends in Banks it will help.

Banks have agents to dispose these cars and have some procedures also. In most cases, these agents ensure the good ones are sold to ppl they know. Detailed inspection is also not entertained mostly.

most of these cars come with one key. so you have to get that complete set changed.

a word of caution - u never know the back ground of the car/previous owner. if it was owned by some supect characters, you may not want them to see you in their repossesed cars !
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Old 27th January 2009, 01:15   #15
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I bought a re-posessed 118NE once and it is a long tale. I saw this car in the yard and it looked freshly minted. A closer examination of the exterior confirmed this. I asked for a closer look and was given the keys. The Odometer showed 40K Km!! on a car that was not even registered. So I lifted the bonnet and checked the plugs, etc. I also looked in the exhaust clutch cable etc. looking for signs that would indicate the true running that the car had done and guessed that it was about 5K Km.

I made a bid for it, much to the delight of the senior manager and chagrin of the junior manager!

Obviously what had happened was that the Jr. chap had earmarked it for one of the 'special' customers and had therefore contrived to make the car look older for two reasons - to make it unattractive for others and to ensure that it was sold cheap. Unfortunately for him, I decided to take a second look. I used this car for more than 3 years and nothing ever indicated that my initial estimate of 5K Km was wrong.

I agree with narayan on all the points that he has made.

If you do not have friends in the banks you can walk into the main branch of ICICI bank (who in my experience have the most vehicles to sell) as well as other banks and ask to meet the person in-charge of reposessed vehicles.

If you have an idea of which make of car you want, you can ask in that car's showroom as to which bank they have a tie up with and visit that bank alone. The person in charge of the repossessed vehicles will give you the address of the yard where they store these vehicles and give you a pass to enter and examine the vehicles there. Once you make your pick and have a couple of alternatives, go back and start the haggling / bidding process.

Cheers and happy car hunting.
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